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Question(s) / Instruction(s):

     40.     (Journal entries - tax revenue accounting - year-end adjustments)

Prepare entries to record the following transactions and events related to Colfax County's tax revenues for the year beginning January 1, 2009:
          a.     To raise property tax revenue of $800,000, the County bills its property owners a total of $802,000, providing a $2,000 allowance for uncollectible taxes.
          b.     During the year, taxpayers pay a total of $750,000 in property taxes.
          c.     E. Bloodworth declares bankruptcy, owing the County $2,000 in property taxes. The County writes off the unpaid amount as uncollectible.
          d.     The state collects sales taxes on behalf of Colfax County. It sends the County $150,000 for sales taxes collected during the year.
          e.     At year-end, the County declares all unpaid property taxes to be delinquent.
          f.     To prepare financial statements for the year, the County comptroller makes the following determinations regarding tax revenues:
               (1)     She estimates that Colfax will receive $20,000 in delinquent 2009 property taxes before the end of February, 2010. The other delinquent taxes will trickle in later in 2010.
               (2)     She learns that the state will remit $10,000 to Colfax in January 2010 for sales taxes collected by merchants in December, 2009.

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